Buying A Home: The Launch FCU Guide
Buying your first home is one of the biggest purchases you will make during your lifetime, and it may also be one of the most exciting. However, buying a home is far different than buying a new pair of shoes, a bike, or even a car. There are many great benefits of owning a home; however, buying a home is a huge responsibility, and takes careful consideration and a lot of planning. Here are five questions to ask yourself before you make the jump from renting to owning.
5 Question to ask before buying a home?
1. Are my finances in order?
One very important element to take into consideration is your current financial situation. Do you have a lot of credit card debt, student loans, or personal loans? Having a car loan, credit card, or student loans does not mean that you are not able to buy a home; however, you just want to make sure that you will be able to afford your monthly mortgage payment on top of your other monthly financial responsibilities.
2. Am I prepared to pay for home maintenance?
One of the benefits of living in an apartment or condo is that many things such as lawn care, maintenance, and pest control are taken care of for you. When you make the move from renting to owning you may be responsible for property taxes, insurance, city assessments, water, sewer, garbage, utilities, fixing your own appliances, repairing your roof, mowing your lawn, paying for pest control, and more. If you buy a home that is part of a home owners association, you may not be responsible for some of these costs; however, you will probably be responsible for paying a monthly HOA fee.
3. Do I plan to stay in the area?
According to Time Money, the old rule of thumb is that you should plan to stay in your new home for at least three to five years. Some financial advisers are recommending an even longer window today. The cost of moving can be quite expensive, so making sure that you really like an area before moving in is a must.
4. Is my job secure?
Do you plan on staying in your job for a while? If you foresee an upcoming career switch, make sure it would not result in a two hour commute to work every day, or even a move out of state. Buying a home is a huge commitment, that’s why it’s very important to know that you will be staying in the area for at least the next three to five years. Surprise relocations do happen, but that should not stop you from buying a home. Just make sure that you do not plan to make a career switch that would result in a lengthy commute to and from work every day.
5. Can I afford a down payment?
The down payment on your new home may be one of the biggest lump sums of money you have to put down. In addition to a down payment, keep in mind that you will also incur closing costs, insurance, and taxes. If you are like many, you may not have a large amount of money to put toward a down payment. At Launch FCU we offer mortgages for as little as 3% down, allowing you to open doors for less. For more, click here.
The Bottom Line
Owning your home is a great thing. It allows you to start building equity, while also providing you with a sense of pride. In addition, long-term buying is usually cheaper than renting. If you feel like you are ready for home ownership, one of the first things to do is utilize a mortgage calculator to determine how much home you can afford. Then, speak with a friendly Launch FCU Home Loan Specialist to guide you through every step of your home buying journey. Buying a home is a terrific investment when the time is right, and only you know when you are ready to make the leap.
© Copyright 2016 Launch Federal Credit Union. All Rights Reserved
- Surviving A COVID-19 Summer With Kids
- 8 Smart RV Buying Tips
- How To Celebrate The 4th of July Virtually
- 8 Financial Tips For High School Seniors
- 10 Ways to Support Local Businesses
- 9 Tips For Working Remotely
- 6 Ways To Budget During COVID-19
- Struggling To Pay Your Loans? Here’s What To Do
- How To Avoid Coronavirus Scams
- Best Places To Watch A Launch On The Space Coast
- 10 Tips To Prepare For Tax Season
- How To Raise A Money Smart Kid
- How to Avoid Bad Check Scams
- 9 Frugal Family & Date Night Ideas!
- 8 Ways to Jump Start Your 2020 Financial Resolutions
- 8 Easy Ways to Avoid Holiday Travel Stress
- 4 Tips On Snagging a Lower Interest Rate Mortgage
- 7 Tips for Avoid Cyber Criminals on Cyber Monday
- Avoid Gift Card Scams This Holiday Season
- Make Your Auto Loan Process Seamless: Here’s What You Need to Refinance!
- July 2020
- May 2020
- April 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015